What To Do If A Tenant Wants To End Their Lease Early

Jan 6, 2021

As property owners know, the revenue from a rental unit solely depends on the occupancy rate and the commitment of tenants to pay rent. This means that vacant units are a source of losses for landlords in the US. For instance, in 2019 alone, there were about 3 million unoccupied houses in the US, costing landlords approximately $1000 per unit, as reported by Statista. For a guarantee of occupancy, you can secure a long-term lease with a reliable tenant and save the unnecessary tenant turnover costs. However, sometimes even long-term tenants may feel the need to break their lease due to different reasons. While leaving is inevitable, breaching the lease can arouse some legal issues depending on its terms. Here are a few tips on what to do if a tenant wants to end their lease early.

Ask Why

According to the US Census Bureau, most Americans relocate due to reasons such as the desire for a new home, job loss or transfer, and family-related issues such as divorce. One of the terms of a typical lease is that the tenant must occupy the house until the term expires. In other words, ending the lease early is a breach of contract, which may attract legal penalties. Therefore, you should find out why the tenant wants to move and solve the issues that are within your control. For instance, if a lack of property maintenance is the issue, you can perform repairs to improve this problem area.

Review the Terms of the Lease

Usually, when a tenant breaks a lease, the landlord obliges him/her to pay rent for the remaining term of the lease to honor the agreement. However, the federal government exempts some government and military personnel from these laws. Therefore, find out if your tenant is eligible for terminating the lease early and act accordingly. For instance, if the tenant is not government personnel, you should ensure they stay and complete the lease or else pay the outstanding rent for the rest of the term.

Replacement Tenants

Some tenants might bring a replacement tenant to occupy the house in an attempt to evade the consequences of a breach of contract. While this is acceptable, you should personally find your own new tenant before leasing the house instead of allowing your former tenant to do so. Generally, screening potential tenants is one of the ways to ensure safety in your rental unit, so you should conduct it thoroughly.

Contact Specialized Property Management Houston

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